CRIS TEST EXAM 2 2026 CONSTRUCTION RISK
AND INSURANCE SPECIALIST TEST PAPER
QUESTIONS AND SOLUTIONS GRADED A+
◉ A Christian organization owns a fourplex. It wants to rent to only
Christian tenants. Under the federal Fair Housing Act, is this legal?
Answer: Yes. Religious organizations which rent to tenants for
residential purposes are exempt from the Fair Housing Act
◉ What happens to trade fixtures after a business moves out of a
leased property? Answer: The tenant removes their trade fixtures
and takes them upon moving out.
◉ Suppose that a borrower has a gross monthly income of $3,000
and wants to qualify for a conforming loan (total debt service ratio
of 36%) with a monthly PITI payment of $800. What is the
maximum amount of additional long-term obligations this borrower
may have after PITI? Answer: $280
◉ A square bedroom measures 10 feet by 10 feet. What is the area of
the room? Answer: 100 square feet
◉ Which of these is an economic characteristic that makes land a
distinctive commodity?* Answer: situs
,◉ In a fixed-rate mortgage that is fully amortized, the total amount
of interest to be paid is: Answer: predetermined
◉ Which is exempt from the federal Fair Housing Act? Answer:
renting a room in a house occupied by the owner
◉ The Americans with Disabilities Act applies to: Answer: privately
owned or government-owned public accommodations
◉ Condemnation is the act of seizing private property from citizens.
What gives the government the right to do this? Answer: eminent
domain
◉ The PHYSICAL characteristics of land are that land is
indestructible, non-homogenous, and: Answer: immobile
◉ Which statement BEST defines the term contingency? Answer:
stipulation that must be satisfied before the contract can be
performed
◉ If a borrower is behind on payments, the acceleration clause gives
the lender the ability to: Answer: call the entire loan balance due
immediately
, ◉ A metes and bounds legal description always returns to: Answer:
the point of beginning
◉ What should a license holder do if a client instructs them to do
something that would discriminate against a protected class?
Answer: advise the client they cannot legally discriminate against
certain groups
◉ What is a novation? Answer: the substitution of one contract for
another
◉ A married couple bought a home ten years ago for $400,000.
Their neighborhood has rapidly grown in popularity, and they were
able to sell their home this year for $950,000. How much of that
money will they be required to pay capital gains tax on? Answer:
$50,000
◉ Which element of a valid contract states that the contract cannot
require any illegal activities or outcomes? Answer: lawful objective
◉ Deanna wants to sue her real estate agent, but finds out that she
has no legal recourse because too many years have passed since the
offending incident. What is this an example of? Answer: statute of
limitations
AND INSURANCE SPECIALIST TEST PAPER
QUESTIONS AND SOLUTIONS GRADED A+
◉ A Christian organization owns a fourplex. It wants to rent to only
Christian tenants. Under the federal Fair Housing Act, is this legal?
Answer: Yes. Religious organizations which rent to tenants for
residential purposes are exempt from the Fair Housing Act
◉ What happens to trade fixtures after a business moves out of a
leased property? Answer: The tenant removes their trade fixtures
and takes them upon moving out.
◉ Suppose that a borrower has a gross monthly income of $3,000
and wants to qualify for a conforming loan (total debt service ratio
of 36%) with a monthly PITI payment of $800. What is the
maximum amount of additional long-term obligations this borrower
may have after PITI? Answer: $280
◉ A square bedroom measures 10 feet by 10 feet. What is the area of
the room? Answer: 100 square feet
◉ Which of these is an economic characteristic that makes land a
distinctive commodity?* Answer: situs
,◉ In a fixed-rate mortgage that is fully amortized, the total amount
of interest to be paid is: Answer: predetermined
◉ Which is exempt from the federal Fair Housing Act? Answer:
renting a room in a house occupied by the owner
◉ The Americans with Disabilities Act applies to: Answer: privately
owned or government-owned public accommodations
◉ Condemnation is the act of seizing private property from citizens.
What gives the government the right to do this? Answer: eminent
domain
◉ The PHYSICAL characteristics of land are that land is
indestructible, non-homogenous, and: Answer: immobile
◉ Which statement BEST defines the term contingency? Answer:
stipulation that must be satisfied before the contract can be
performed
◉ If a borrower is behind on payments, the acceleration clause gives
the lender the ability to: Answer: call the entire loan balance due
immediately
, ◉ A metes and bounds legal description always returns to: Answer:
the point of beginning
◉ What should a license holder do if a client instructs them to do
something that would discriminate against a protected class?
Answer: advise the client they cannot legally discriminate against
certain groups
◉ What is a novation? Answer: the substitution of one contract for
another
◉ A married couple bought a home ten years ago for $400,000.
Their neighborhood has rapidly grown in popularity, and they were
able to sell their home this year for $950,000. How much of that
money will they be required to pay capital gains tax on? Answer:
$50,000
◉ Which element of a valid contract states that the contract cannot
require any illegal activities or outcomes? Answer: lawful objective
◉ Deanna wants to sue her real estate agent, but finds out that she
has no legal recourse because too many years have passed since the
offending incident. What is this an example of? Answer: statute of
limitations
